- Loan Amount: $9,828,000
- Capital Source: Bank
- Purpose: Hotel Construction to Perm Loan
- Keys: 96 Keys
- Term: 5 Years Fixed / 10 Year Term
- LTV: 70% LTC
- Rate: 5.75% Fixed for 5 Years
- Amortization: 18 Months Interest Only / 25 Year
Tower Capital recently arranged $9.828 million in financing for the construction of limited-service hotel in Last Vegas, NV. The hotel will have 4 stories and 96 rooms. The construction is expected to take fourteen months and be open for business in early 2024.
Tower’s client, a Las Vegas investor, was originally working with his own bank for the construction loan. The borrower then reached out to Tower Capital after his bank was unable to close the loan after sitting on the third-party reports for months and then interest rates started to rise. The borrower’s goal was a low rate, 70% LTC construction to perm loan. After running a competitive process, Tower Capital produced multiple options for its client.
The borrower chose the best option which was 70% LTC for a 10-year term and 5 years fixed at 5.75%. This lender was able to use the current land value instead of the original purchase price, reducing the amount of cash the borrower had to have in the deal. As an added bonus, this lender was able to fix their rate with a signed term sheet, instead of waiting until closing adding additional interest rate risk.
About Tower Capital:
Tower Capital was founded to enable owners of commercial real estate to achieve their investment goals with the least amount of time, energy, and cost, while creating surety of execution and peace of mind.
Established in 2015 and headquartered in Phoenix, Arizona, Tower Capital provides customized structured financing to investors throughout the United States. We specialize in debt and equity placement ranging from $3 Million to $300 Million and have financed over $2.5 Billion for our clients since inception. We focus on independent financial advising with an entrepreneurial mindset, market vigilance and personalized attention to every client.